BAE Systems is prime contractor on a team to help develop the Army's next ground combat vehicle. (US Army photo)

HUNTSVILLE, Alabama -- BAE Systems' and Northrop Grumman's operations in Huntsville are part of a nearly half-billion dollar contract to design the next Army combat vehicle.

BAE is the prime contractor of a team was awarded a $450 million contract to participate in the technology development phase of the Army's Ground Combat Vehicle program. The team includes Northrop, along with QinetiQ, iRobot, MTU and Saft.

Another group, led by General Dynamics, won a $440 million contract, also for the technology development phase.

The technology development phase is a 24-month program leading toward building a prototype in the engineering and manufacturing development phase.

The contracts are fixed-price-incentive fee, designed so that companies absorb cost overruns above a negotiated ceiling.

"Advancing to this next phase in the competition brings us one step closer to fielding a vehicle for our soldiers that is affordable, provides for maximum force protection and is built to accommodate future technological enhancements," said Mark Signorelli, vice president and general manager of Weapon Systems at BAE Systems. "We appreciate being selected by the U.S. Army and the Department of Defense to mature our GCV solution, a critical capability required to modernize our Army and provide soldiers with a decisive edge against any adversary.

"At BAE Systems, we take pride in protecting those who protect us and with our partners and teammates, are fully committed to the success of this program."

Kevin Bogan, Northrop Grumman's GCV program manager based in Huntsville, said because of "some exceptionally good quals in C2" - that's defense-speak for "qualifications in command and control" - the majority of Northrop Grumman's work on command, control, communications and computers hardware and software development, integrated logistics support, and systems engineering and testing is being led in Huntsville.

Bogan said the majority of Northrop Grumman's final product will also be produced in Huntsville if the BAE-Northrop team is awarded the production contract in two years.

Related command and control work Bogan cited in Huntsville includes the Command Post Platform; Counter-Rocket, Artillery and Mortar program; Force XX1 Battle Command Brigade and Below (FBCB2) and Integrated Air and Missile Defense Battle Command System.

Work on the program will also be performed at BAE Systems and Northrop Grumman facilities in Michigan, California, Pennsylvania and Minnesota.

As prime contractor, BAE Systems leads the overall program management, systems integration, vehicle design, structure and logistical support as well as readiness and sustainment of the platform. Northrop Grumman serves as the C4ISR lead.

QinetiQ provides the key component of the hybrid electric drive propulsion system, the E-X-Drive; iRobot is the unmanned ground vehicle integrator; MTU provides the engine and power generation; and Saft provides the battery and energy storage system.

General Dynamics' team includes Lockheed Martin, Raytheon and Tognum America.

The Army plans to buy more than 1,800 vehicles to replace the Bradley Fighting Vehicle. The new vehicles will transport nine soldiers and their equipment.

"Our design draws on affordable, mature technologies to provide protection, capacity for a nine-soldier squad, network interoperability, mobility and lethality that is unmatched by any existing infantry fighting vehicle," Steve Schultz, vice president at General Dynamics Land Systems, said in a statement.